BIOS

Fiat Industrial and U.S. subsidiary CNH reach merger deal

MILAN, Italy -- The Italian heavy-duty vehicles company Fiat Industrial has reached an agreement for a full merger with its U.S. subsidiary, the farm machine maker CNH Global N.V.

The companies said in a joint statement that CNH had agreed to Fiat Industrial's sweetened offer, including a cash dividend of $10 per CNH share prior to the completion of the merger. The deal will give Fiat Industrial control over the 12 per cent of CNH it didn't already own.

Each CNH shareholder would receive 3.828 shares of the merged company, while each Fiat Industrial shareholder would receive one share.

The new company will be listed on the New York Stock Exchange. The merger is expected to close in the second quarter of 2013.